Definition

The capability of a business or system to handle a growing amount of work, customers, or orders, primarily determined by the incremental cost of adding a new customer.

Why it matters (in Poovi’s context)

Crucial for business growth, distinguishing businesses that can expand efficiently from those with inherent limitations.

Key properties or components

  • Incremental cost per customer
  • Demand constraint vs. scalability constraint
  • Technology enablement
  • Process optimisation

Contradictions or debates

None.

Sources